renault csr management switzerland sri roadshow · renault investor relations april 1-2, 2009...

RENAULT INVESTOR RELATIONS April 1-2, 2009

RENAULT CSR MANAGEMENT Switzerland SRI roadshow

GUILLAUME VAUDESCALSRI RELATIONS

2DRF – INVESTOR RELATIONS April 1-2, 2009

SOCIAL PERFORMANCE

0102

AGENDA

ENVIRONMENTAL STRATEGY

03

RENAULT KEY FIGURES


01 RENAULT KEY FIGURES


International

+ 1.7%

Asia AfricaAsia Africa

192

2007 2008

215

+ 12.3%+ 12.3%AmericasAmericas

+ 4.1%+ 4.1%

2007

255

2008

245424

2007

EuroMedEuroMed

2008

405-- 4.6%4.6%

- 7.2%Europe

Thousand units PC+LCVYTD End 2008 (D+9 Data)

2008 COMMERCIAL RESULTSRENAULT RESISTS IN A FAST DECREASING MARKET

WorldWorld

20082007

2,485 2,382

-- 4.1%4.1%EuropeEurope

20082007

1,624 1,507

-- 7.2%7.2%


+ 4.0%

- 7.0%

- 45.0%

+ 4.2%

+ 0.4%

- 2.2%

+ 6.5%

+ 2.5%

- 3.5%

- 21.8%Production

Auto Revenues

Registrations

Q1 2008

Q2 2008 Q3 2008 Q4 2008

- 30.0%Change vs. 2007

- 6.0%

Q4 2008A RAPID & BRUTAL DOWNTURN


20082007

Other operating income & expenses - 116 - 329 - 213

Net financial income & expenses 76 441 + 365

Associated companies 1,675 437 - 1,238

Current & deferred taxes - 255 - 162 + 93

Net income 2,734 599 - 2,135

2008 FINANCIAL RESULTS

Revenues 40,682 37,791 - 7.0%(1)

Operating margin 1,354 212 - 1,142

in % of revenues 3.3% 0.6% - 2.7pt

(1) On a consistent basis, 2007 = €40,620m

Change(million euros)

72008 FINANCIAL RESULTS FEBRUARY 12th 2009

OPERATING MARGIN VARIANCE ANALYSIS

CHANGE 2008 / 2007 : - € 1,142m(million euros)

1,354

212

2007 2008

- 174

- 504

- 816

+ 15

+ 121+ 21

+ 156

FX

Volume

SalesFinancingG&AWarranty

Mix / Price Enrichment

Purchasing

Others

+ 282

+ 175

R&DRaw

Material - 147Manufacturing

& Logistics

- 271


40

44

48

52

56

60

64

68

72

Dec-8

9Ju

n-90

Dec-9

0Ju

n-91

Dec-9

1Ju

n-92

Dec-9

2Ju

n-93

Dec-93

Jun-9

4Dec

-94Ju

n-95

Dec-95

Jun-9

6Dec

-96Ju

n-97

Dec-97

Jun-9

8Dec

-98Ju

n-99

Dec-99

Jun-0

0Dec

-00Ju

n-01

Dec-01

Jun-0

2Dec

-02Ju

n-03

Dec-03

Jun-0

4Dec

-04Ju

n-05

Dec-05

Jun-0

6Dec

-06Ju

n-07

Dec-07

Jun-0

8Dec

-08Ju

n-09

Dec-09

Global TIV (million units)

12-month sliding average

2009 level estimation(3-mth seasonal adjustment : Nov 08, Dec 08, Jan 09 ) 64YTD end 2008 situation

2009 OUTLOOKA CONTINUING DECREASING TREND

68

-14%-19%

55


Aiming for a positive Free Cash Flow

! Maximization of revenue sources! Cost reduction! Working capital decrease! Investments decrease

2009 ACTION PLAN

RENAULT INVESTOR RELATIONS April 1-2, 2009

ENVIRONMENTAL PERFORMANCE02


GLOBAL WARMING

URBAN AIR POLLUTION

RESOURCES DEPLETION

THREE MAJOR ENVIRONMENTAL CHALLENGES

Regulations (Euro 5,6…)

New technologies(Particulate Filter, NOxTrap), Car affordability

CO2 Taxes & Incentives(on Fuels and Cars)

Car price Use costs

Sales mix changes

Material pricesFuel shortage

ProfitabilityCar residual value New Fuel solutions

RESOURCES DEPLETIONTOP 3 CO2

ENVIRONMENT& HEALTH

LIFE CYCLE…UP TO RECYCLING

IMPACTING THE BUSINESS :

THREE OPPORTUNITES


THERE IS NO LONG TERM ENVIRONMENTAL MANAGEMENT OUTSIDE OF MULTIPLE IMPACTS MANAGEMENT OVER THE ENTIRE LIFE CYCLE

Abiotic DepletionPotential

Acidification Potential

Eutrophication Potential

Global WarmingPotential

Photochem. Ozone Creation Potential


LIFE-CYCLE ANALYSIS : MEGANE 3 VS MEGANE 2 (GASOLINE)






Vehicleproduction

Fuel production

Vehicleuse End of life


0

20

40

60

80

100

eutropgw p

0

20

40

60

80

100

eutropgw p

g

- 9%

- 35%

- 10%

- 1%

- 40%

Laguna II1,9dCi110cv

Laguna III1,5dCi110cv






Ref 100%Total life cycle impact

ON EACH NEW VEHICLE, TRUE REDUCTION OF THE FOOTPRINT REQUIRES PROGRESS FOR ALL INDIVIDUAL IMPACTS


95% RECOVERABLE1 USE OF RECYCLE MATERIAL2

BUSINESS COMMITMENT3

2008: RENAULT - SITA

(SUEZ)Joint Venture in

FRANCE

END OF LIFE VEHICLE : RENAULT AT THE FOREFRONT

2008 HOMOLOGATIONMEGANE III

(First type approval for recycling – anticipating

regulatory requirements)


02.1 FOCUS ON CO2 & ENERGY CHALLENGES


Share of mix of Renault sales in the European Union (%)

Emission level (g/km CO2)

60% OF OUR 2008 SALES BELOW 140 g/km CO2

0% 20% 40% 60% 80% 100%

120100 140

24% 36% 40%

Renault particle filter

Logan eco²


FOSTERING THE PROGRESS FROM GENERATION TO GENERATION

DIESEL ENGINES :

GASOLINE ENGINES :


CARS AND ANTHROPOGENIC CO2 EMISSIONS! Personal cars are responsible of about 12 % of the European CO2 emissions! Europe takes the lead of car CO2 emission reduction

(confirmed by Dec 19, 2007 Proposal of EU Commission)! But the issue is global

g/km


80

100

120

140

160

180

200

220

240

260

700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800

2006 Market trendline 2006 Average 2012 objective 100%mass 60% Mass

U.E. CO2 REGULATION- 2012 - AGREEMENT IN DEC.2008

18,75%

18,75%

18,75%

60% mass

CO2Penalty

Kerb weight (kg)

CO

2(g

/km

)


2020 TARGET


CO2 REDUCTION LEVERAGES

Energy generationPowertrain efficiencyVehicle Energy management

Fuel consumption & CO2 emissions

Aerodynamics

Weightmanagement

Rollingresistance

Auxiliaries consumption

Mechanical yield On-boardEnergy management

Catalytic aftertreatmentThermodynamics&kinetics

Production énergie


WEIGHT MANAGEMENT CONCEPT

PC C ROP AF

Cost

Additional cost of lightening

Cost saving on materials

Cost savingof avoided weight increase

Cost savingby indirect lightening Weight

managementcan be

economical


DOWNSIZING….

1.5 dCi 1.2 TCE 100 1.4 TCE 130

Diesel engine Gasoline engines

3 cylinders0,9 l

90 hp

4 cylinders1,2 l 115 hp

Forthcoming turbocharged & direct injection gasoline engines range :


Average Customer value:

52 €/ g/km

1g CO2/km0,04 l/100 km

Fuel consumption

CO2 national taxations

GLOBAL IMPACT ON FOR THE PLANET MEANS AFFORDABLE ENVIRONMENTAL CARS

Each gram of saved CO2 per km has a customer value


CO2TECHNOLOGIES

0%0€/g

2% 4% 6% 8% 12% 14% 16% 18% 20%

20€/g

40€/g

60€/g

100€/g

80€/g

10%

Customer value

52€/g/km

Vehicle managementPowertrain technologies

CO2 benefit

Confidentiel Renault

(1)

(2)

(3)


02.2 FOCUS ON THE ELECTRIC VEHICLE


THREE MAIN REASONS FOR A MASSIVE DEPLOYMENT OF ELECTRIC CARS DURING THE NEXT DECADE

! 1. Technology & Cost- Advanced Li-ion batteries- High volumes production

! 2. Sociology & Market- EV driving range (>> 100 km)- > 50 % of world population in cities (2006)- Suburban drivers: 87 % less than 60 km/day !

! 3. Regulations & Incentives- Car ban or restriction in cities- CO2 taxes on cars


ZERO EMISSION11 PARTNERSHIP AGREEMENTS SIGNED

Tennessee

Denmark

IsraelPortugal

Sonoma County

Oregon Switzerland (Energie Ouest Suisse)France (EDF)

Monaco YokohamaKanagawa


THE INFRASTRUCTURE NETWORK

Quick charge

43 to 100 kW

Standard Charge

3-6 kW

Swap stations

+ NEED FOR SMART NAVIGATION TO LOCATE SPOTS, BOOK THEM AND MANAGE AUTONOMY


4 BUSINESS MODELS

Operator

Operator

Operator

OEM

OEM

OEM

OEM

OEM

Model 2OEM does batteries

Energy operator

B-PLC model(Vehicle and

Battery supply only)

OEMOEMSell/leaseVehicle

Model 4(Israel)

Operator on batteries, energy

and car

OEM

OEM

OEM

OEM

Model 1OEM does batteries

No operator

Operator

Operator

Operator

OEM

Operator

Operator

Operator

Model 3Operator on

batteries and energy

Information system

PublicArea

Swap

Sell/lease

Battery Resale

Recycle

Private (Home)

Charging

EV business fields


03 SOCIAL PERFORMANCE


2009 ACTION PLANADAPT OUR PRODUCTION LEVEL

260

80

100

120

140

160

180

200

220

240

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Thousand units 2008

60

2009 Production forecastRenault global industrial output


SHARPENING THE COMPETITIVE EDGE

! Freezing recruitment in Europe! Contributing to a 10% reduction in overheads! Reorganizing production plants


RENAULT VOLUNTARY DEPARTURE PROJECT

TARGET :Renault SAS: 4,000 peopleo/w Sandouville plant: 1,000European subsidiaries : 1,100

RESULT (as of 03.20.2009) :

•Renault SAS : 6,273 people engaged in the process, 2,413 actual departures

• o/w Sandouville : 1,468 people engaged in the process, 611 actual departures plus 155 inter-sites


2008 TEMPORARY LAY-OFF FIGURES (Renault SAS)

! 2008 : 27,600+ man-day of temporary lay-off (blue collars)

429K €

768K €

332K €

French State aid

Renaultcompensation

Compensation fund

Legal basis

SpecificRenaultagreement


RENAULT SOCIAL AGREEMENT 2009

! Blue collar temporary lay-off better compensated :! Higher French State compensation! Solidarity fund between white collar and blue collar workers : Cancelled White collar

days off are donated into a compensation fund for blue collar workers

FrenchState aid

Crisis management fund

Cancellationof accumulated holidays

[1 white collar’s days off = 5 bluecollar’s days off compensation]

64%

16%

20%

Cost savingpositive impact :

180M€Renault contribution


POPULATION PYRAMID ANALYSIS

TOTAL Production staff

ManagersNon managerialstaff


CONCLUSION

! Renault CSR policy recognized for years

! Innovation capacity both in the technology field and in the social field

! True fundamentals to arise from the crisis

renault csr management switzerland sri roadshow · renault investor relations april 1-2, 2009...

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